In the minutes of the European Central Bank Governing Council’s March meeting, the bank noted that the persistence of uncertainties continued to weigh on the growth outlook. Below are some key takeaways from the publication.
- Incoming data had continued to be weak, in particular in the manufacturing sector.
- Measures of underlying inflation remained muted.
- Domestic cost pressures, in particular wages, had been strengthening, but had yet to translate into higher underlying inflation.
- Market-based measures of longer-term inflation expectations had weakened in recent months.
- In considering the outlook and risks for the external environment, members took note of the further slowdown in global growth and trade momentum.
- There were concerns about the potential impact of trade protectionism on the global outlook and the ongoing risk of an escalation of trade conflicts.
- Members agreed to extend the Governing Council’s forward guidance through the end of 2019 as part of the overall package.
- Members agreed that the design of the TLTRO-III operations should support the smooth transmission of monetary policy and favourable bank lending conditions.
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